We re-examine the puzzling pattern of lead-lag returns among economically linked firms. Our results show these patterns are driven largely by investors' tendency to ignore information that arrives continuously in small amounts. In contrast, when information with the same cumulative returns...

This document contains my lecture notes on Valuation and Security Analysis developed over 25 years while teaching at Cornell, University of Chicago, and Northwestern University. There are twelve lecture notes in this document covering cash flows, valuation, cost of capital, and security...